The strengthening peso

[InternetTough 1,386]

So...they are basing their projected boom on increased remittances? That is ridiculous. Sending the best of your people overseas to work is very short-sighted. It does nothing to help build up the country from within. It says something very bad about your economy if remittances can have so great an effect on your economy.

 

Yep---those remittances sure are beneficial to the Philippine economy---+10%. I don't dispute that at all! Of course, they are a strength, not a sign of weakness. The Philippines found a way to get ahead that makes this country partially shielded from global economic shocks, with huge diversification.

 

Too bad you didn't read further, all the way to the second paragraph, where they are talking about investment picking up, attractive assets and the Philippines becoming a gem.

 

The good part about the overseas workers is NOT the whole story of the Philippine economy.

 

 

The South Korea story also included many workers going abroad to work in the Middle East. They were working for Korean companies, but the sheer numbers of them, hundreds of thousands, is an important part of the Korea story, which has since moved on from that stage. Now they often have Filipinos filling jobs that Koreans once did there.

Edited December 14, 2012 by InternetTough

[ellenbrook2001 553]

hmm somenthing fishy with the pesos the philippine still the same nothing improve hmmmm i am lost??

[CebuKano 1,751]

Anyone sitting on US $$ and not converting them into the currency of their choice (where they live now or where they plan on living in the future) and do it NOW is asking for trouble. If they are thinking that the exchange rate will improve in their favor by any meaningful amount, they are ignorant and deserve to lose 10% or more of their money just on the conversion factor. If they wait past 2014... they could lose as much as 25-30% of their money. That's a big hit. But it's up to them.

 

Pension payments are a totally different matter because if they are paid in US dollars, that money is doomed to devalue so fast it will make our heads spin. But that is beyond anyones control.

[InternetTough 1,386]

Anyone sitting on US $$ and not converting them into the currency of their choice (where they live now or where they plan on living in the future) and do it NOW is asking for trouble. If they are thinking that the exchange rate will improve in their favor by any meaningful amount, they are ignorant and deserve to lose 10% or more of their money just on the conversion factor. If they wait past 2014... they could lose as much as 25-30% of their money. That's a big hit. But it's up to them.

 

Pension payments are a totally different matter because if they are paid in US dollars, that money is doomed to devalue so fast it will make our heads spin. But that is beyond anyones control.

 

The Philippine Retirement Authority in the last two years decided not to accept any other deposit other than in US dollars. Previously, it accepted Korean won, Chinese renminbi, or Japanese yen---or even in Philippine pesos. I think that their plan is that when you decide, if you decide, to get your deposit back, it will be in much reduced in value US dollars.

 

Admittedly, I am not sure if, under the old dispensation, you could deposit $20,000 US-equivalent in yen and then get the same amount back (plus interest) in a yen-denominated account.

Edited December 14, 2012 by InternetTough

[CebuKano 1,751]

 

 

The Philippine Retirement Authority in the last two years decided not to accept any other deposit other than in US dollars. Previously, it accepted Korean won, Chinese renminbi, or Japanese yen---or even in Philippine pesos. I think that their plan is that when you decide, if you decide, to get your deposit back, it will be in much reduced in value US dollars.

 

Admittedly, I am not sure if, under the old dispensation, you could deposit $20,000 US-equivalent in yen and then get the same amount back (plus interest) in a yen-denominated account.

 

I didn't know this but it makes perfect sense when you ask yourself why would they make such a huge change in their policy of currencies they will accept.

[sjp 316]

Anyone sitting on US $$ and not converting them into the currency of their choice (where they live now or where they plan on living in the future) and do it NOW is asking for trouble. If they are thinking that the exchange rate will improve in their favor by any meaningful amount, they are ignorant and deserve to lose 10% or more of their money just on the conversion factor. If they wait past 2014... they could lose as much as 25-30% of their money. That's a big hit. But it's up to them.

 

Pension payments are a totally different matter because if they are paid in US dollars, that money is doomed to devalue so fast it will make our heads spin. But that is beyond anyones control.

 

I can officially retire next year. I can take my monthly pension for life or take a cash settlement. That cash settlement could easily generate my monthly pension when invested. I,m wondering if I should take the cash settlement and convert it to pesos

[Alan S 4,607]

if I should take the cash settlement and convert it to pesos

 

 

Never put all your egss in one basket.

And that includes having all your money in any single currency.

[sjp 316]

Yes. Your right, I would maybe do half and invest the rest in Canada

[tomaw 1,341]

 

 

 

 

if i was a single guy i would try other places but alas married makes things different

.......... Married or single I like The Philippines. It's when and if we have kids that will make us return to The U.S. unless the education, employment and standard of living change enormosly. Of course if that happens the cost of living will go way up and the exchange rate will go way down.

[tomaw 1,341]

 

Neither have they been to the Spratley islands but they know there are 23.4 TRILLION US DOLLARS in oil reserves there. As soon as Philippines can get their hands on even a small portion of that this place will be as filthy rich as a Middle Eastern country:

 

 

http://www.mb.com.ph/articles/358043/263trillion-oil-reserves#.UMrvxuSbNio

 

Note the news story is 8 months old but this country is still sitting on the same amount of oil and once they get the US lined up to protect oil companies then the lid is gonna blow off this place. . . . or China may get it all.

............. Even if that happens who will it benifit? A handful of wealthy Philippine businessmen and politicians? Maybe also the American government that helps get it away from China. However I doubt the effect would trickle down tn the average Filipino. There's just too much coruption for business to work in The Philippines.

[broden 57,115]

23.4 TRILLION US DOLLARS

 

remember the days when a trillion dollars use to be real money

[A_Simple_Man 6,199]

Yes. Your right, I would maybe do half and invest the rest in Cana

 

Thats exactly what I did. The Philippine half is gone now but at least I still have the Canadian half.

[smokey 21,911]

I can officially retire next year. I can take my monthly pension for life or take a cash settlement. That cash settlement could easily generate my monthly pension when invested. I,m wondering if I should take the cash settlement and convert it to pesos

 

 

 

and if that dont work out for you with all that investing in houses and land you tech. will not own anyway i guess you can go back to the us and get a job at walmart as a greeter and start over ,, i have seen many many many guys come here and invest most dont want to talk about it for some reason... if you take a pension you will never be hungry and how do you know for sure you will want to stay here for ever , sure you can always leave but most of the time your money will have to stay... proud owner of an anchor house

[USMC-Retired 10,995]

Hot money is very dangerous. It may appear the country has success and is driving in the right direction. Yet one major turn of events they pull they plug and out comes the money. In the Philippines hot money is very risky there are so many things that could happen. Terrorism Natural disasters Corruption Political unrest. Any one of those could have investors pull the plug. Yes it can give short term success though here I would not count on it long term. They must have industries and a business model to succeed. Hot money for years propped up the Chinese economy. They are in a downturn as it is leaving how deep will depend on the industry they created when the hot money was flowing.

Edited December 15, 2012 by USMC-Retired

[spooks 1,729]

The Philippines will never be the sum of its parts as the politicians who run it, like it the way it is. far too much is invested in the current Presidents term. It is near half way over and none of the foreigners who talked up the good game have entered into any of the much vaunted partnership deals on the table, for what ever reasons. The "stuff it up" committee is still in place and waiting for their next contribution.

 

I genuinely do not see past the window dressing. latest fail is the TAX situation where the Philippines is c basically described as far too much taxed from too few. With uncertainty excepot that it is unceratin with the BIR using, some say abusing powers under section 4 to disregard laws already on the books by providing interpretations that were never intended.

 

One thing business hates is uncertainty, uncertainty in taxation even more so. Just ask the guys at Shell who are in court trying to stop a right royal shafting going back years all because the BIR decided to re interpret and back date their view of the world.

 

This sounds negative, perhaps it is.

 

Then again the key question for me is why all the talk and no action? from these so called investors

Edited December 15, 2012 by spooks